This document discusses various types of insurance that are relevant for filmmakers, including general liability insurance, workers compensation, inland marine insurance, commercial auto insurance, professional liability insurance, and excess liability insurance. It explains why filmmakers need insurance, such as requirements from film offices, locations, and financial backers. Insurance can help protect against claims from physical injuries, property damage, errors and omissions, and other risks involved in film production. While insurance has a cost, it is important for filmmakers to have adequate coverage in place.

1. Insurance for Filmmakers
Chris Johnson
October 20, 2011

2. Insurance for Filmmakers
• What is insurance?
• Why do filmmakers need insurance?
• What types of business insurance are relevant
to filmmakers?
• What are Certificates of Insurance?
• Can I afford insurance?

3. What is Insurance?
• Form of risk transfer
• Insured assumes small known loss in exchange
for promised compensation in the case of a
larger uncontrollable loss
• The opposite of playing the lottery

4. Why do Filmmakers Need Insurance?

5. Why do Filmmakers Need Insurance?

6. Why do Filmmakers Need Insurance?
• Required by:
– Film offices
– Rental houses
– Locations
– Financial backers
– SAG
– Distributors

7. Recent Examples of Insurance Claims
• Sacha Baron Cohen and Universal Pictures
were sued for the bingo scene in “Bruno”
• Warner Bros. Pictures is being sued by a stunt
double for "The Hangover Part II" for a head
injury
• Production of “In Time” was delayed 2 weeks
by Justin Timberlake’s leg injury
• Heath Ledger’s death during the filming of
"The Imaginarium of Doctor Parnassus"

8. What Types of Insurance are Relevant?
• General Liability
• Workers Compensation
• Inland Marine
• Commercial Auto
• Professional Liability (Errors & Omissions)
• Excess Liability (Umbrella)

9. Commercial General Liability
• Claims relating to physical injury to others, or
damage to their property
• Protection for ‘innocent by-standers’
– A camera is dropped on a pedestrian’s foot
– A boom falls on a parked car
• Occurrence and Aggregate Limits
• Stunt coverage is an additional expense

10. Workers Compensation
• Coverage for work-related injuries and
diseases
– Required by law for employees by all states
– Required by some locales for film permits
– Free lancers often meet the WC definition of
employees
• Payments are made directly to healthcare
providers and injured workers

11. Inland Marine
• Equipment – Rented or Owned
• Props, Sets, Wardrobe
• Negative Film, Videotape & Digitalized Image
• Third Party Property Damage
• Cast Coverage

12. Inland Marine
• Third Party Property Damage
– Claims relating to damage to property in your
‘care, custody and control’ (locations)
• May not be very important for filming in a shoe store
• May be very important for filming in a BMW dealership
– General Liability does not cover damage to
locations

13. Inland Marine
• Cast Coverage
– Pays the production company for lost time due to
cast member illness or death
– Does not pay to the cast members themselves
• It is not a replacement or alternative to Workers Comp
– Can cover all cast/ crew or just key people
– Physical exams may be required for covered
people

14. Inland Marine – Less Common
• Extra Expense
• Rental Cost Reimbursement
• Civil Authority
• Office Contents
• Animal Extra Expense
• Hired/ Non-Owned Auto Physical Damage

15. Commercial Auto Liability
• Bodily injury or property damage claims relating
to auto accidents
– Stunt vehicles
– Production vehicles
– Personal vehicles
• Hired/Non-Owned
– Hired means rented
– Non-Owned means borrowed (employee personal
vehicles)
• Stunt coverage is an additional expense

16. Professional Liability
• Also called Errors & Omissions
• Malpractice Insurance for Doctors is a
commonly known example
• Coverage for Errors in Work Product
– Unauthorized use of copyrighted material
• Film that is too similar to another
• Unlicensed music
– Unauthorized use of someone’s image or likeness
– Defamation

17. Professional Liability

18. Excess Liability
• Similar to Umbrella coverage in personal
insurance
• Coverage kicks in if underlying liability
coverages are exhausted
– General Liability
– Auto Liability
– Professional Liability
• More common for larger productions

19. Certificate of Insurance
• Document providing proof-of-insurance to
third parties
• Not a contract in and of itself
• Cannot be used to change terms of the actual
insurance policy (which is a contract)
• Insurance regulations limit what can be
included on certificates

20. Certificate of Insurance
• Additional Insured (General Liability)
• Loss Payee (Rented Equipment)
• Primary Coverage
• Unlocked Vehicle Exclusion
• Special Wording (additional charge from
insurer)

21. Can I Afford Insurance?
• Short-Term Policies are available for film
productions
• Monoline (à la carte) Policies can satisfy some
very specific needs
• Package (prix fixe) Policies are usually the best
deal for established businesses
– DICE Annual Producers Package
• Most major insurers accept payments for annual
policies
• Most major insurers accept credit cards

22. Can I Afford Insurance?
‘Buy as much insurance as you can afford—some
is better than none.’

23. www.johnsonese.com
info@johnsonese.com
773.857.0242